Rising glove prices spell good news for Kossan

Need for gloves: Kossan expects the acute global shortage of gloves to persist, given the rising severity of the pandemic and limited new supply.

PETALING JAYA: The higher average selling price (ASP) of rubber gloves during the Covid-19 pandemic has analysts upbeat about Kossan Rubber Industries Bhd’s earnings.

TA Securities analyst Tan Kong Jin, who is reiterating a “buy” call on the stock with a target price of RM10.30, said for its upcoming third quarter (3Q) 20 results, the brokerage expects the company to post another record net profit of more than RM300mil with significant earnings growth of more than 100% quarter-on-quarter (q-o-q) and year-on-year (y-o-y).